Moved back to Canada early 2022, less than 10k US income

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STG
Posts: 3
Joined: Sun Mar 12, 2023 9:14 pm

Moved back to Canada early 2022, less than 10k US income

Post by STG »

Hi I'm hoping someone can help me here.

I worked in the US from 2019-2022 on a TN Visa, and left at the end of February in 2022. I resigned from my position and only worked 3 weeks in the US on the TN visa earning less than 10k USD. However, I would be considered a US tax resident under the prescience test for 2022.

I moved back to Canada in March, and started working in May. This makes me a factual resident of Canada, thus, I can avoid dual taxation on my incomes via the tax treaty. I've earned between 50-80k CAD.

I am trying to figure out how to file this on my IRS return.

I spoke with a woman at the IRS but I am confused. She said file 1040NR with my W-2, and in line 1k [Total income exempt by a treaty from Schedule OI (Form 1040-NR), item L, line 1(e)], put my US income in there. She also said to fill out schedule OI and cite the tax treaty article there. I believe it is XV.

It feels like I should put my CANADIAN income in line 1k, and attach my T1, no? She said DO NOT fill out form 8833 because I made less than 10k in the US, but if you consider my Canadian income too, shouldn't I have to?

This feels like it should be easier. Let me know if you have any insight. Much appreciated.
-MA
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Moved back to Canada early 2022, less than 10k US income

Post by nelsona »

The treaty doesn't protect from dual taxation, if both countries are allowed to ta, or you choose to have them tax.

for Canada, it;s simple: you file a returning resident return with a March starting date, reporting world income from that date.

For US, you are consider dual-status. The 10K you earned in US in NOT tax-exempt for US tax, because you were resident of US at the time, so you file dual-status return, beginning with a 1040 STATEMENT (not your final retunr), reporting the 10K (it would be tax-free if you lived in canada at the time). So the IRS telephlunkie was incorrect. You would also report any other income you earned Jan-March.

You ALSO need to file a 1040NR at the sam time which will contain the 10K you earned, and the US tax will be determined on that return.

IRS Pub 519 describes the mechanics of the dual-status return
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
STG
Posts: 3
Joined: Sun Mar 12, 2023 9:14 pm

Re: Moved back to Canada early 2022, less than 10k US income

Post by STG »

Thank you so much for your response nelsona.

What is a 1040 statement? I've never heard of that.

So am I correct in that I do not document my Canadian income from May-Dec '22 on my 1040NR at all?
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Moved back to Canada early 2022, less than 10k US income

Post by nelsona »

Read the section in Pub 519 for 1040 statement explanation/

You would not report any non-US income on the 1040NR.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
STG
Posts: 3
Joined: Sun Mar 12, 2023 9:14 pm

Re: Moved back to Canada early 2022, less than 10k US income

Post by STG »

I think I got it.

Thanks for you help. I really appreciate it.
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